A summary of the circular flow model which demonstrates the interdependence of households and firms in a market system
Log in alban.copie 9 months agoPosted 9 months ago. Direct link to alban.copie's post “Isn't there some videos m...” Isn't there some videos missing ? The written summary talks about a lot of things not covered in the videos (I only see two videos in this unit) • (42 votes) Aryan Pai 5 years agoPosted 5 years ago. Direct link to Aryan Pai's post “Why would a firm demand l...” Why would a firm demand land from households in the resource market? • (7 votes) Ebony Joyner 5 years agoPosted 5 years ago. Direct link to Ebony Joyner's post “Hi Aryan,It could be for...” Hi Aryan, (25 votes) kalvin page 3 years agoPosted 3 years ago. Direct link to kalvin page's post “Hi,I am not confident th...” Hi, • (16 votes) yosef wolf 4 years agoPosted 4 years ago. Direct link to yosef wolf's post “Please confirm I have thi...” Please confirm I have this right: In Market Economies, in addition to prices "controlling" the product market, prices also "control" the resource market. This would explain why, in market economies, an employee's field of work impacts the size of their wages: an employee with a scarce-yet-much-demanded-skill-set can charge lots of money for their "resources". • (15 votes) Sizhe Zhang 5 years agoPosted 5 years ago. Direct link to Sizhe Zhang's post “Why is the capital in exc...” Why is the capital in exchange of interest? • (8 votes) Diego Charry 4 years agoPosted 4 years ago. Direct link to Diego Charry's post “Capital would mean the to...” Capital would mean the tools, machinery, buildings, etc provided to the government in exchange of money (interest). (5 votes) sakria.z 4 years agoPosted 4 years ago. Direct link to sakria.z's post “are there any online teac...” are there any online teachers for grade 10 students on this topic cause i feel like i need to be thought to understand • (4 votes) Aisyah A.J 4 years agoPosted 4 years ago. Direct link to Aisyah A.J's post “"Rent is the payment firm...” "Rent is the payment firms make to household in the exchange for land". What if the firm bought that land? Do the firms still need to pay rent or now it has become capital, and firms need to pay interest? And what are the example of "household" as the owner of resources? I could only think household as in a member of a house/dwelling. Which in its smallest scale, only provide • (4 votes) zaintelcompany 2 years agoPosted 2 years ago. Direct link to zaintelcompany's post “when the firm owns a land...” when the firm owns a land he becomes the household here even if they do not pay rent phisically even the firm gets benifit of the land ah because he bought the land by paying big amount so bit by bit land will even depriciate right (1 vote) aramirezd313 10 months agoPosted 10 months ago. Direct link to aramirezd313's post “Why is rent "the payment ...” Why is rent "the payment firms make to households in exchange for land" instead of The payment households make to firms in exchange for land • (3 votes) Hari Shankar Karthik 10 months agoPosted 10 months ago. Direct link to Hari Shankar Karthik's post “In order to produce their...” In order to produce their goods and services, firms require the four factors of production - land, labour, capital, and entrepreneurship. In the resource market (or factor market), firms give money to households in exchange for these resources. The money given in exchange for land is called rent, for labour, wages, for capital, rent, and for entrepreneurship, profit. (2 votes) awesome1001a 4 years agoPosted 4 years ago. Direct link to awesome1001a's post “what is the meaning of ho...” what is the meaning of household • (2 votes) Peter 4 years agoPosted 4 years ago. Direct link to Peter's post “in Key Terms above:House...” in Key Terms above: (3 votes) Elle 7 months agoPosted 7 months ago. Direct link to Elle's post “Could someone elaborate o...” Could someone elaborate on how rent is paid to households, is this implying that households can be corporations? Considering rent is paid to landlords, who own property for profit. I'm wondering if "household" and "rent" has a different economic definition. • (2 votes) daniella 2 months agoPosted 2 months ago. Direct link to daniella's post “In economics, the term "h...” In economics, the term "households" refers to individuals or groups of individuals who own and supply factors of production (such as land, labor, and capital) to firms in exchange for income. In the context of rent, households typically refer to individuals or families who own property and receive rental income from tenants or lessees. Rent is paid by firms (or individuals) who use the land or property owned by households for various purposes, such as operating a business or renting residential space. Therefore, households, in this context, are the property owners who receive rent payments as part of their income. (2 votes)Want to join the conversation?
It could be for the interest of building a shopping center or a bridge or roadway etc. where they would need to purchase the land in order to demolish it to make room commercializing. I believe that would be an instance of why.
I am not confident that this is an error and perhaps I am the only user suffering it.
It seems as though there is a large jump in unexplained concepts between the 2 videos featured in this unit and the Overview.
Is some content missing or are there only meant to be the videos: "Property rights in a market system" and "Markets and property rights"? If so, it seems like a large jump in the content.
Thanks guys, I appreciate what you do!
And what does the interest mean here?
labor to firms.
Households are "the owners of resources — supplied to firms in the resource market — and the buyers of goods and services — demanded from firms in the product market"
